NSW regional property markets show strong investment potential

Regional areas across New South Wales have emerged as promising investment locations, with some markets offering significant returns within a few years.

Property expert Terry Ryder has warned investors against targeting areas that are already experiencing high demand.

“[People] wait until they hear reports that a location is hot and decide they want a piece of the action, but by then it’s often too late. Prices are already inflated and it is reaching the peak of its price growth,” Ryder said.

Early investors who followed previous market guidance could have achieved capital gains of nearly $100,000 on investments starting from $400,000.

Three NSW regions have been identified for their growth potential, based on affordability, housing demand and infrastructure development.

The border region of Albury-Wodonga, with its median house price of $865,000 and unit price of $450,500, has attracted major businesses and is set to benefit from the $31 billion Inland Rail project.

“It’s got a wonderful location – lots of big businesses have major distribution centres there,” Ryder said.

Tamworth, with a median house price of $653,000 in its eastern suburb, has recorded annual growth of 9 per cent over five years.

“We’ve got people moving to the regions for an affordable lifestyle … It’s an important regional city, it’s growing, it’s got a lot of infrastructure investment happening,” Ryder said.

For investors focused on metropolitan areas, Harris Park in Sydney’s west offers affordable unit options with a median price of $482,000, despite house prices reaching $1.39 million.

“A lot of people would turn their nose up at it, but people buy where they can afford in places with a lot of infrastructure … There are not many places in Sydney where you can buy places in the 400,000s,” Ryder said.

The suburb has seen unit prices increase by 11 per cent over the past year, while rents rose by 14 per cent.